President Trump will not accept anything less than a complete structural change in our trade relations with China.

UPDATE: Trump Faces Down the China Threat

POMPEO: “unbreakable” U.S.-Australia alliance

Speaking Sunday in Sydney, Pompeo condemned China’s territorial claims in the South China Sea and unfair trade practices, painting these contemporary tensions as a generational test for the “unbreakable” U.S.-Australia alliance. The secretary of state drew a direct link between China’s economic boom and its expanding military footprint across the Indo-Pacific. 

“I’ll hear folks talk about trade and economic issues as separate from national security. Let’s make no mistake about it, China’s capacity, the People’s Liberation Army’s capacity to do exactly what they’re doing is a direct result of trade relationships that they built.”

Pompeo went on to praise Australia for its proactive opposition to China’s 5G networks—a lingering bone of contention with some European allies—as well as Australia’s efforts to thwart covert Chinese disinformation campaigns and electoral interference.

Read it all @  by Nolan Peterson



U.S. Commerce Secretary Wilbur Ross has slapped a whopping $4.4 billion countervailing duty on Chinese cabinet manufacturers.  The rate of manufacturing subsidy identified within the ‘wood cabinet‘ study shows a massive 229% subsidy rate via discounted land, free lumber, electricity, raw materials, direct grants from government and discounted loans from Chinese banks to enhance export incentives.

 Ckick on image 

If you ever wondered how come Chinese furniture is so cheap, well, it’s not a stretch to consider those same subsidy rates likely apply to their household furniture and wood products.

(Bloomberg) Add $4.4 billion in imported cabinets to the long list of Chinese goods slapped with U.S. levies in the escalating trade dispute between Washington and Beijing.



Beijing has once again used their proxy province of North Korea to launch small two short-range ballistic missiles as leverage in the U.S. and China trade confrontation.

WASHINGTON – For the fourth time in less than two weeks, North Korea has fired projectiles into the Sea of Japan, a U.S. official said.

The two projectiles, fired on Tuesday morning local time, were assessed to be similar to the short-range ballistic missiles tested by North Korea last week, the official said. (read more)

Moments later President Trump and Treasury Secretary Steven Mnuchin fired a counter-missile directly into the heart of Beijing’s trade currency manipulation:

(Treasury) The Omnibus Trade and Competitiveness Act of 1988 requires the Secretary of the Treasury to analyze the exchange rate policies of other countries.

Under Section 3004 of the Act, the Secretary must “consider whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade.” Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator.

As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions. (more)


Currency manipulation, intellectual property theft and forced technology transfers for U.S. companies in joint ventures with Chinese companies.

U.S.-China trade war developments have roiled markets for more than a year, and there have been signs the rafts of additional tariffs from both sides are having real effects on economies around the world. Click HERE to read more

  • The reforms within the original agreement were antithetical to Beijing. Chairman Xi Jinping and the communist politburo rejected them. 
  • For Beijing the compliance and enforcement sections within the agreement were too severe and did not allow China to retain control over the trade terms.  The agreement was rejected.
  • As a consequence it’s not a matter of “if” Trump will apply more tariffs; it is a matter of “when” will Trump apply the tariffs.
  • That said, there’s no duplicity in the U.S. Position. Mnuchin and Lighthizer are earnestly working in good faith; but President Trump is expecting ‘no deal’.

Secretary Wilbur Ross was very insightful last week when he also spoke of the current U.S. perspective toward the U.S-China trade negotiation.  

Click image to watch 


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